Strike’s Post

Transcript

Hi, welcome to Strike. In this video we'll learn how to make the best use of the Strike over inside screen. So basically strike coincide screen is nothing but the summary of the open interest. Over here you can see which strike price is having highest open interest in call input, which strike price having highest Y addition in the call and the put. And which strike prices having highest liquidation in call and put. So basically you get a summary of the entire FNO stocks in one screen. Now the way we have designed the screen is that you can find the stocks which are near the resistance level, near the support levels, which are above the resistance level or which are below the support level. Now the logic for this is that we are looking this screen from a seller's perspective which means say if we take a stock like Adani Enterprise, OK, here it is showing as neutral interpretation. That is because this stock is not near the call option. Or this talk is not near the highest why where the put option is, that's why over here it's in neutral. Basically if you see a stock like ACC, the reason why it is near resistance level, it is because it is coming very close towards its highest open interest in the call option which is at 27. Oh which means that this screen basically will look from a seller's perspective. So in case if 27. 100 call option has the highest open interest. It means that the sellers at 2700 call option don't expect the stock to go above this price and that is why that is going to act as a resistance in the near term. And that is why in the interpretation you will see it as near resistance. Now similarly if you see a stock like Gale. So it so its market price is at 181.90 and if you see the put open interest is the highest at 180 which means that the put sellers don't expect that the prices will go below 180 and since the price is very close towards its highest put open interest and that is why we have turned it as near support. Now in the interpretation you can go, you can click over here and you can see all the stocks. Which are near support or you can see all the stocks which are above support or below support or which are in neutral territory as well. I mean the choice is up to you. So basically the way to use this screen is that say for example if the market is rising higher and the broader trend is bullish, So what you would want to do is that you would want to find the stocks which are near support level, OK. And add to that you can also do sorting based on the oil change. So say I do the sorting based on the oil change and because I am trying to find a stock which is near support level, I do the oil change over here and I see that Coromandel is the one where there is 92% white change and it is near the support level which means. That the sellers of the port of 150 are very confident of defending this level. So this could potentially be an interesting idea which I might want to explore more, right. Similarly, if we can see a stock like LIC Housing Finance over here as well, there is a 56% surge in the oil change today in 6:50 put option, OK. This means that the sellers of LIC 650 put are confident that the prices. Won't go below that and and that is why this seems to have shorted. 650 put option. Similarly if the market is going down then you might want to find the stocks which are near the resistance level and for that I will click on near resistance level. And again what I can do is that I can sort it based on the oil change. But over here because you are looking at near resistance level so you would do the sorting based on the call strike where there is highest Y change in that case actually in the tower qualifies. As the candidate where people think that the prices might not go about 250 level and and that's where they have gone ahead and they shorted 250 call option. So basically on the upside in this tower will find it very difficult to break past the 250 unless you don't see the open interest going down. Now the other way also to look at is that say if we choose the category of above resistance, in this case you will find that the prices are trading above the highest open interest in the call option. Which means that there could be a scope of a good short covering rally that can play out provided you see the oil change in negative. Now sometimes you might end up seeing the oil change being positive despite the. Prizes being much above the resistance level. OK, so in this case actually you are not seeing any such example. Now let us try and explore such examples. So firstly, you can also go at the top and you can change the date and this basically works as an archive. OK, now you see over here basically Tata consumer. It is trading above the resistance level, which means that it is trading above 1160 and over here you can see that the oil change is positive as well. So if the oil change is in double digit then it means that people have shorted to a greater extent and despite prices moving above the resistance level or above the call option. Strike price. Despite that, they are not ready to move, which means that they are confident that the prices. Will go down South. In such cases you have to monitor the oil change and if the oil change start decreasing that means it starts coming down. Then that means that people are actually unwinding their position and in that case you will need to see where is it that they are actually trying to add the call option on the upside. Because typically you will see if the sellers are unwinding from the call option then they might normally go at the higher level. So say for example if we see Maruti over here. The call options are being unwinded for 11,000 call option and actually you can see 11,800 call option. That is where the addition is, which means that there is a potential that Maruti can actually rise higher to 11,800. So again, if you go by the above resistance level, it can work out both ways. That means if the oil change is in strong double digit or so, you might expect that the prices may not sustain at higher levels. But at the same time, if you're seeing unwinding in the call option, OK, despite it being in the highest Y. Region. So that's where it means that you know, the sellers are not confident and they are unwinding their position and then there is a scope of an up move in the days to come. OK, now this screen will actually work very well from a day or two perspective because this screen will basically work as a Screener for you to identify the stocks. Which are basically near support level, below support level or near resistance and above resistance level. And also add to that you have this option of using the combined voice or the non combined Y. So if you untick the non combined Yi mean if you untick the combined Y then you will be able to see the open interest of only that particular expiry but the moment you click on combined Y so the open interest rate is. Added across all the expires and typically it is preferred that you'll see combined. Why? But again it is up to your comfort. One more feature in this screen is that say for example, you don't want to see all the FNO stocks, OK, you just have your selected basket so you can also take over your. And that is the only. Result that would appear on the screen so that way you know you can search your stocks. And you can put it over here. So say for example I want Reliance. I click on the search button. I type Reliance over here. And I I can add reliance in this list. Now the moment you go to any other screen and come back to the screen, this template will remain so. That way you will be able to your favorite stocks.